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Financial analysis

Definition of financial analysis;

Financial analysis is a process that evaluates the methods of investing and employing money in companies, examining the efficiency and profitability of their operations, and relies on the use of a range of tools, such as financial ratios analysis. In order to understand the opportunities and problems of investment,
Financial analysis is defined as a study of the financial information of a particular enterprise or project in order to understand cash flows, profits and expenses.
Another definition of financial analysis is the evaluation of projects and businesses associated with financing to determine the nature and adequacy of their performance. Financial analysis is often used to examine the financial situation of the entity in terms of its stability and profitability in order to justify its cash investments.

Objectives of financial analysis:

Financial analysis as an important tool for all types of enterprises seeks to achieve a set of objectives.
Determining the financial position of the entity. Comparison of the financial position of the establishment with the institutions operating in the same sector. Participate in decision-making about money; by achieving higher returns and lower costs. Use of proposed financial policies to change the financial position of the entity. Contributing to directing individuals from investors to participate in investment in all fields of investment. Follow-up of financial risks that an enterprise may face due to the policy used in financing. Know the success rate of an enterprise in achieving its goals and profits.

Financial analysis tools :

The application of financial analysis depends on the use of the analyst responsible for one of the analysis tools, which helps to achieve the goals required successfully, the most important of these tools:
Analysis of financial structure: Ensuring that there is funding for needs without effects on financial equilibrium and financial profitability; by relying on the application of the principle of liquidity and maturity, or the separation of activities for analysis. Evaluation of activity and results: is concerned with the way enterprises achieve results, and to judge the extent to which their activities are able to achieve profits; by using intermediate management balances, which show the stages that constitute causes and outcomes; Profitability assessment: is the comparison between the results achieved and the methods used to achieve them, and is classified as the most objective indicators in the performance evaluation process, and is used to make investment and financing decisions. The analysis of cash flows is one of the most advanced analytical tools. It is used in balanced financial analysis, and is concerned with tracking the causes of surplus or deficit in the treasury. It also contains indicators used in strategic decision making.

The importance of financial analysis :

The use of financial analysis in the establishments is of great importance to the working environment, and summarizes this importance according to the following points:
Assist management in setting objectives, which contributes to the preparation of appropriate plans for the implementation of economic activity. Support management in correcting errors as they occur; by providing them with appropriate corrective measures. Discover new opportunities for investment. This analysis is a tool to support audit effectiveness. Contribute to the diagnosis of the financial situation of the facility. Know the ability of an entity to obtain and repay loans.

Types of financial analysis :

There are several types of financial analysis, classified according to the following principles:
The implementing agency for financial analysis, and includes two types:
Internal analysis:
Financial analysis is carried out through a department or employee who follows the organization's organizational structure, such as accounting and financial management.
External Analysis:
Is the financial analysis carried out by an entity outside the establishment, and contributes to the service of third parties, and seek to achieve the objectives of its own, such as chambers of commerce and industry and banks. The method used in financial analysis, is divided into several types, including analysis of comparisons, analysis by mathematical methods, and analysis based on indices. Financial analysis According to its relationship with time, it includes two types:
Vertical analysis:
The analysis is used to analyze the financial statements separately; each list is analyzed independently of the other lists. This analysis is applied in a vertical way to the list elements. Each element is attributed to the total value of its elements, and then added to the total subset. On a macro basis, within a specific date that is described as static or static, and is described as a relative distribution.
Horizontal analysis: An analysis that examines the behavior of each element of the financial statements over time. The movement of each element is reduced or increased over time. This analysis is dynamic because of its ability to explain changes occurring over a long period of time.
The results of financial analysis After application of the financial analysis of all financial statements of an institution; using the tools of financial analysis, this leads to the emergence of a set of results:
Results of internal analysis, including the following: Use of information obtained in the field of general control. Provide a judgment on financial management during the period of implementation of the financial analysis. Contribute to the appropriate decision on the distribution or investment of financial profits.
Provide provisions on the nature of implementation of financial budgets. Results of external analysis, including the following:
Use the identification of tax-related numbers in order to assess financial results. Proposing a financial policy that aims to change the financial position of the entity. Assessing the financial position of the entity and its ability to withstand the results of loans

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Stock market

Inflation

Stock market

Definition of the stock exchange

The Stock Market The Stock Market is the market that regulates the buying and selling of securities, such as stocks and bonds, by following the factors that govern them and are related to the nature of supply and demand within the financial market.
The stock market is also defined as a market that depends on the application of investment in securities, such as the purchase and sale of shares issued by private companies.
Another of the definitions of the stock market is the physical or virtual place where a group of sellers and buyers are located in order to achieve trading of securities between them. This market is divided into two markets: the primary market through which securities are issued for the first time, Financial statements that were previously issued.

The emergence of the stock market:

The city of Venice was the first place to witness the trading of securities in 1300. It was used as a container for information on the various papers offered. In 1531, the stock exchange appeared more clearly in the city of Antwerp in Belgium, where brokers met to carry out business transactions and follow up debts Of individuals. In 1600 AD with the emergence of the East India Company this contributed to the promotion of the idea of the financial market by granting the French, British and Dutch governments the company documents that help in the collection of their dividends. Over time the first stock exchange appeared in London in 1773, but was restricted in terms of Dealing with stocks, unlike the New York Stock Exchange, which used to trade shares in its financial market.
Developments in 21st century telecommunications and Internet technology have directly affected the nature of trading in financial markets, transforming financial transactions into electronic trading, resulting in a change in the world of investments, and customers are using computer systems to apply special sales and purchases In securities; in order to reach the implementation of transactions between parties in easy ways.

Characteristics of Stock Market:

The stock market features a range of characteristics:
Returns and Risks: Fundamental characteristics of the stock market. Assets, such as equities, are characterized by a high degree of risk and are influenced by the particular changes in the economic environment and the nature of the competition between companies in terms of sales and profits, which contribute to the determination of the prices of these shares. Changes are the fluctuations in financial markets that are the result of changes in prices associated with a range of events, such as government economic reports and enterprise profits, so successful investors in the financial markets are careful to hedge changes and volatility by diversifying investments in their portfolios Investment. Liquidity: is the provision of the stock market margins that illustrate the differences between buyers and sellers of securities by encouraging these markets to combine enterprises and companies from all over the world, and contributed to information technology to promote and support private trading in the financial markets; And participants in these markets. Global: One of the characteristics and advantages of the stock markets, bringing together all European, American and Asian companies together, which helps to encourage investors and institutions to use electronic networks available around the clock in the application of trading. Regulation: One of the most important characteristics of the financial markets. It depends on the existence of laws that regulate them and ensures that all investors receive private information in investment operations at the right times.

Importance of the stock market:

The stock market is an important market in the economic sector and summarizes its importance according to the following points:
Economist: The stock market is used as an indicator to measure the economic situation of countries, helps to reverse all changes, and clarifies stock prices in terms of the rise or fall, which indicate the boom or recession in the economic situation. • Set prices for securities: help to provide values for securities that are based on the impact of supply and demand, and contribute to the assessment of the nature of demand for these securities, which is an important benefit to investors; Ensuring the integrity of financial operations: It is important to apply these markets, depending on the observation of the safety of companies and their ability to apply regulations and rules during dealing with the stock exchange. Participation in economic growth: The stock markets support the ability to invest, through the exchange of securities between different companies, which leads to the construction of capital and contribute to economic development. Encouraging savings and investment: By providing investment offers for most securities, which helps attract many individuals towards savings in order to invest in securities offered through companies, rather than applying investments in assets that do not achieve any financial returns, such as gold.

Stock Market Objectives:

The stock market seeks to achieve a set of objectives, the most important of which are:
Building a secure investment environment capable of achieving credible competition. Developing all methods and means used in trading; applying the best and latest methods. Development of work in the stock market; through excellence in services provided to individuals and enterprises. Provide information about trading to investors and dealers in the stock market. Supporting private awareness in investment, which includes all individuals in the community; especially those dealing with the stock market. Diversity in financial instruments used by investors in the stock market.

See More :

Inflation

Industry

Inflation

The concept of inflation is the economic rate that leads to an increase in the general level of prices of services and goods. This leads to a decrease in the purchasing power of the currency. Inflation is defined as the continuous and general rise in prices. Other inflationary tariffs are the excessive increase in circulation and the decrease in purchasing power.

Types of inflation

Inflation is divided into a group of species, based on various economic criteria :

The standard inflationary pressure, divides into two types :

Demand inflation is the increase in prices due to the high demand for supply, which leads to the inability of supply to face the rise in demand due to the full use of the productive elements or the lack of flexibility of the means used in supply to meet the surplus demand.
Cost inflation is the increase in the costs of production factors at a rate exceeding the rate of increase in production. This leads to a rise in the general price level. The most important factors are the labor costs, which increase their rates and increase the levels of realized benefits of production.

Standard inflation exposure, divided into three types are :

Apparent inflation: is to take the government and monetary authorities a negative attitude towards this inflation; which leads to the spread of phenomena, and the accumulation and acceleration of public prices are rising at a higher rate of increase circulation of money to the quantities traded.
Stressed inflation: An economic situation in which prices are fixed, with inflation pressures; because of the freezing of public power prices; in the adoption of legislation or administrative decisions for this type of inflation.
Hidden inflation: the emergence of a significant increase in cash entry without a method of disbursement; because of the presence of intervention from the state, the various procedures become without the exchange of increasing incomes, which leads to the survival of inflation is hidden can not be seen.

The standard of belonging factors leading to inflation, divided into two types :

Local inflation: inflation is the result of domestic factors in the country, and external factors have no significant impact in the occurrence.
Imported inflation: is the increase in domestic price levels; due to the impact of a range of external factors clearly.

Standard intensity of inflation, divided into two types :

Hyperinflation: The emergence of successive high price rises. They produce large and harmful effects, which are difficult to limit or manage, or lead to, the loss of money for their purchasing power and value. This causes individuals to get rid of their money.
Inflation is the average price increase that is less than hyperinflation, with the role of money as a financial intermediary, but not completely lost confidence; government authority can rebalance its own functions.

Characteristics of inflation

Inflation as one of the most important economic phenomena is characterized by a number of characteristics, including :

Inflation is the result of many economic factors that may conflict together; inflation is therefore a complex, complex and multidimensional phenomenon.
Inflation results from imbalances in the relations between prices of services and goods, and the prices of productive elements such as product costs, wages, and profit levels.
Inflation leads to devaluation in relation to prices of services and products, which is expressed in the form of purchasing power parity.

Causes of inflation

The emergence of the phenomenon of inflation depends on many reasons, the most important of which are :

The increase in investment and consumption expenditure is the increase in total expenditures from the full level of employment, reflecting the increase in aggregate demand for aggregate supply at the operational level, resulting in inflation from that increase; due to the increase in total expenditures with no increase in the supply of goods; Offset by a constant supply of products and services.
Budget deficit: The increase in public expenditure compared to public revenues, and is one of the methods on which governments depend on financing productive projects in progress, and affects the fiscal deficit in general in the economic conditions of States.
Lack of productive elements: a decline in the number of workers or raw materials, and other factors of production that affect the overall production process, and lead to the emergence of inflation; due to low supply and high prices.
The decline in capital in kind is the emergence of a shortage in the capital used in the level of operation, leading to the inflexibility of production, resulting in a widening gap between the money offered and traded products and services, leading to higher prices and the emergence of inflation.

Inflation rate :

Inflation is a measure used to measure the extent to which currencies lose their monetary value; that is, the inflation rate is used to measure the rise in the prices of services and products over time. Inflation may increase as a result of the enormous printing of money, leading to increased economic supply and reduced demand, Some of the important products result in their high cost.

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Loans

the World Trade Organization

the World Trade Organization ( WTO )

Is a global organization, the only organization specialized in international trade law. Its headquarters are located in the city of Geneva, Switzerland. The WTO is composed of 160 Member States, as well as 24 observer States and the official language In the organization English, French, Spanish, the WTO was founded in 1995 in one day January, and was created because of the world's economic growth in world trade.

Objectives of the World Trade Organization

The World Trade Organization (WTO) has several objectives :

The creation of an economic world of peace and prosperity.
Is based on providing the necessary protection for the international market, to suit different levels of development and living.
The establishment of an economic world that flourishes in peace and is responsible for making decisions in a typical manner, that is, the consent and consensus of all Member States.
To achieve the full employment of all resources of the world.
Creating and creating a competitive position among countries in trade, which depends on economic efficiency.
The WTO's strategic objectives within the Uruguay Round are:

Agreement on trade in services.
Multilateral Agreement on Trade in Goods.
Convention on Trade-Related Aspects of Intellectual Property Rights Protection through: Trade Policy Review Mechanism, Understanding of Procedures and Rules Governing Dispute Settlement, and the Bilateral Trade Agreement.
Agreement on investment procedures that are related to trade.

Tasks and activities

The World Trade Organization (WTO) is engaged, inter alia, is :

Its presence as a forum for trade talks.
Management of trade agreements.
It reviews national trade policies.
They settle disputes related to trade.
Working with international organizations.
Assist States in all issues facing trade policy.

Structure

The World Trade Organization consists of several committees and structures :

The Ministerial Conference, which is the head of the Authority within the Organization, consists of the Ministers of Commerce of the Member States of the Organization.
The Secretariat, which is the Director-General, and the staff members who are independent from their own.
The General Council, which comprises representatives of the Member States of the Organization, meets once a month.
The main boards, which consist of the Commodity Trade Council, the Service Rights Council, and the Intellectual Property Rights Council.
Sub-forces, comprising the Committee on Trade and Environment, the Balance of Payments Constraints Committee, the Trade Committee, the Budget Committee, the Administration and Finance.

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Definition of the Bank .

Industry

The emergence of industry has depended on the developments of civilizations and peoples , Communities have been transformed from pastoralism and agriculture, based on livestock grazing and agriculture, into advanced and developed industrial societies that have a range of institutions and facilities that transform raw materials on or off the surface into diverse industries and products.

Industry is a set of processes that transform raw materials into final materials, provide benefits to consumers, or export to other countries, and are defined as the art that man performs until he becomes a profession. The industry is classified into traditional industries that include a range of crafts and handicrafts, and modern industries that rely on factories and laboratories, through the use of raw materials and converting them into other materials.

Importance of industry

The industry plays a positive role in the regional and national economic environment and contributes to the development of the standard of living of individuals in various fields :

The industry provides commodity inputs through primary trades such as mining, quarrying, grazing, agriculture, and sea and land fishing. This contributes to the economic activity of these sectors.

The industry provides job opportunities and employment opportunities for unemployed workers. In order to increase the efficiency of employment, the centers of rehabilitation and training are opened. It specializes in teaching workers how to deal with the modern equipment and machinery used continuously in production.

The industry supports GDP; because of the contribution of its operations to adding value and benefit to the materials used in the productive process; thereby increasing the wealth of peoples; industrial countries therefore have excellent living standards.

The industry contributes to the production of final goods, leading to the development of several economic sectors, such as services, energy, transport and agriculture. The industry is also interested in the production of consumer goods capable of raising the living standards of individuals.

Industry influences regions and regions, leading to major changes in the effective participation of each region in economic movements; by selecting regions for specific industrial areas, which have a set of local constituents.

The progress of industry helps to promote economic and political independence and supports self-sufficiency.

Types of Industry :

The industry is divided into several types:

Primitive industry is the industry that relies on the strength of the hand of man and animal, and this type of industry is often applied in the home. Therefore, it is also known as the domestic industry, for example spinning, food industry, etc. The primitive industry is a global industry, Civilizations to their absence in contemporary societies.

The industry supports the preparation of products used in other types of industries and contributes to its formation according to its final design acceptable to the use of consumers from consumers. It does not use simple industry Any other type of raw material, and it is characterized as an industry that appears in raw and raw material production sites and does not need to be transported unless it is an industry specialized in specific types of metals.

The industry is a special type belonging to the simple industry, also known as the service industry, because societies need to satisfy their consumption. The importance of this industry depends on civilization. The more the civilization develops, the greater the society's needs for industries. Examples include transport, , Car repair, electricity, telephones, and bakeries.

The industry is specialized in cities, and the industry is complex in terms of production methods and means of distribution. It is characterized by the need to use complex and complex machines, relying on more than one raw material in the production process. This industry does not aim at transport or conservation, , And are often manufactured for end-user use and are not intermediaries for another industry. They are not only manufactured for domestic use but can be marketed for external use. Examples of composite industries include watches, cars and chemicals.

Industry constituents

The industry needs many ingredients:

Raw materials: raw materials, the location of the industrial establishment must be close to them.

Labor force: is the industry's need to employ labor capable of working.

Energy sources: The power required to support the operation of machines in the production of factories.

Market: is the site used to sell industrial production, but the market is not used in the technological industries; because of their little weight, cheap transport costs.

Transportation: The network that facilitates the movement of products.

Location: The industries are needed for the presence of areas to help them reach.

Capital: It is money that invests in the beginning of business and business.

Government policy: It is the policy that supports industrial development in some countries.

The relationship between society and industry

Summarizes the relationship between society and industry based on the nature and quality of society, and it is possible to divide societies into three forms, namely :

Developed societies: Industry is not a prime objective; it is a means of providing for the needs of individuals and promoting political independence supported by realistic economic independence based on large quantities of production at low prices through technology that develops means and methods of production.

Third world societies: They are the societies of the capitalist countries. They have an economic system that depends on the importation of machinery and materials, with a low average income and output, and weakness in the industry in terms of skills, gender and techniques.

Arab societies: The Arab industry is weak and has not achieved economic integration. It varies among Arab countries because of the diversity of the specific circumstances of each country and the different nature of economic developments in them.

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Insurance companies

Giant Shipbuilding

Shipbuilding is one of the oldest crafts. The ancient craftsmen made ships using wood. The most famous wood used was bamboo or bamboo. However, with the development of science and the manufacture of steam engines, the design of vessels changed and the materials used in their manufacture changed. Of the basic materials in the shipbuilding industry and especially the giant ships, as modern ships have become generating electricity from themselves using special generators.

shipyard

The shipyard is built and manufactured in a place known as the shipyard. It is known as the marine shipyard. It is mostly a shipyard near the sea to facilitate the transport of raw materials from the port and the ease of transporting ships to the sea after manufacture. The shipbuilding industry is one of the most profitable industries in the world. The country that manufactures it is considered the richest in the world. These countries include South Korea and China. Because of the difference in the goods that are transported in ships, Manufactured to meet these needs, there are some types of ships for general cargo ships and passenger vessels, ships and giant containers, bulk cargo ships. There are important water arsenals, most notably the Berno Turku, located in the city of Turku, on the western side of Finland. This arsenal is the place where most of the public passenger vessels were manufactured for Finland and the surrounding countries. S / Freedom of the Seas, which was completed in mid-2006, is a non-governmental vessel that was received by the Royal Company in 2008 and then the M / S Oasis of the Seas, which was completed in 2009. , And then the M / S Allure of the Seas, which has been completed by us In 2010, which is the largest of all previous ships.

Types of ships

Cargo Transport Line: These ships are used to transport various goods such as cars, spare parts, grains such as wheat, meat and vegetables, and building materials.

Transport vessels Petroleum and petroleum products: These ships are in the form of huge tanks for the storage and preservation of petroleum and its derivatives, usually in the shape of spherical.

Fishing lines: There are some giant ships that are made for fishing only, they contain prominent levers to facilitate the withdrawal of nets from the sea, and also have refrigerators dedicated to the conservation of fish and a plant for packing and canning fish.

Passenger Ship Lines: These vessels feature luxurious designs and luxury amenities. These ships may have a length of 120 meters and carry many passengers.

Military ships: These ships are known for their corrugated colors and various forms according to their role in the naval fleet, some of them destroyed ships, ships of frigates, landing ships, minesweepers, ships for ships, cruisers and submarines.

Various vessels and special vessels: some of them are scientific research vessels, meteorological vessels, observation vessels, and ships for surveying.

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The most expensive 10 homes in the world

Bank

Definition of the Bank

The bank is an institution that obtains the approval of the government authorities in order to accept financial deposits, pay checks, provide miscellaneous loans to individuals and enterprises, and participate as intermediaries in transactions and financial services. The bank is defined as an organization that provides individuals and institutions with the ability to invest, borrow, Between currencies, and other tariffs for the bank is a financial institution with a legal license to allow it to provide financial loans, and the receipt of deposits, and the provision of money services, such as currency exchange, wealth management, and the provision of safe deposit funds.

The emergence of banks

Historical sources point out that the origins of the banks date back to the Babylonian era. It is believed that the oldest historical bank was established in the city of Sibar near the Euphrates River, and there is another view that the existence of banks dates back to the Greek era. The Greeks published the art of exchange that the Romans took from them , And the emergence of commercial banks coincided with the spread of paper money; so the first form of these banks exchange shops that were dealing with the purchase and sale of currencies, and founded the first commercial bank in 1517 in Venice, and later founded a bank in Amsterdam in 1609, and then spread banks in All the countries of the world.

Since the 18th century, the number of banks gradually increased. In the 19th century, with the advent of the industrial revolution in Europe, this led to its entry into the era of production, which required a lot of money. The need arose for banks that resembled the joint stock companies, This led to the emergence of specialized banks in industrial, agricultural and real estate credits.

During the 20th century, banks faced many challenges. They were characterized by the development and renewal of business that emerged in many key areas such as the emergence of modern technological innovations, their use in providing banking services, the provision of modern products related to developments in the financial market, In the development of banking trading methods.

Types of Banks

The development of the banks has contributed to the emergence of many of their own species, each type of specialization in a particular area of banking, and each type of bank has different characteristics, and can be summarized types of banks according to the following :

Central banks are also known as issuing banks, banks that provide government banking services and occupy an important place in the money market. The central bank is the basis of the banking system. It differs from other banks, namely commercial banks, whose main objective is not to make maximum profits, The main functions of the central banks are to issue money, whether paper or metal, and are the main banks and supervisors of all commercial banks. Therefore, the Central Bank was renamed the Bank of Banks.

Commercial banks are also known as deposit banks; they are credit institutions that are interested in obtaining deposits from individuals, in exchange for the ability to withdraw them on demand. Therefore, these banks deal with short-term credits. The banking institution can not be considered a commercial bank if it does not provide And withdrawal of financial deposits. These banks also deal with all financial assets only, such as securities, loans, and do not use any kind of real assets.

Investment banks: Banks are characterized by their operations to build or develop fixed capital, such as real estate, factories, and agricultural land. Their operations are therefore based on non-withdrawable funds, time deposits and borrowing from others during a given period of time, , But the difference between them is the bank's attempt to borrow and attract deposits from individuals and institutions and link them with the granting of interest, while time deposits are dependent on applicants seeking to invest their money in these banks; in order to obtain financial benefits.
Savings and savings institutions are specialized institutions that collect financial savings for individuals, are often on demand and constitute savings books; they may also be considered as savings for a term; their withdrawal depends on a given date and then become bonds or treasury bills.
Business banks are banks that have their own nature; they do not deal with the public, they are limited to financing the operations of the various institutions; by lending, acquiring or participating in their capital; .

The nature of banks' work

Banks are characterized by the nature of their business associated with the use of retail funds for trading, and the following information about the most important of these works :

The bank's role in preserving the funds of individuals; therefore, it must maintain its own level of confidence; it must abide by the return of the rights to the owners. It also includes all the guarantees required from individuals when they receive loans from the bank; From the recovery of money provided in the form of loans, because it is a special money for individuals and institutions of depositors.

Liquidity: Saving money to individuals when they need it, and is part of the bank's financial deposits. This explains the main reason for the need for liquidity in the bank so that it can provide sufficient cash for customer withdrawals.

Profitability: This is the sum of the previous two transactions. Care for liquidity is a guarantee of profitability. As the bank's profits increase, its ability to extend loans increases, thus contributing to credit to customers and covering banking operations.